Political Embeddedness, Trade Gravity and Goods Export—Empirical Evidence from China and RCEP Trade Partners

Main Article Content

Lingjie Zhang, Mengxia Wang, Fang Yuan and Liang Wang

Abstract

This paper constructs an expanded multilevel trade gravity model and uses multilevel statistical analysis methods
to research the mechanism of political embeddedness, trade gravity and China's influence on the export flows of
goods trade in RCEP trading partners. Our research found that the political embeddedness scenes of trade
activities in various countries have significant Heterogeneity, and the resistance effect of trade distance on trade
export flows is not significant, and the variable that actually plays the role of trade resistance is the gap between
political embeddedness scenes and per capita gross national income levels of China and RCEP member states, and
political embeddedness. The resistance effect of the political embeddedness scene difference mainly depends on
two indirect ways of restraining the positive impact of the size of the trading country's economy scale on its export
flows and the positive impact of the economic scale of the trading countries on their import flows. The results of
the robustness test indicate that the research conclusions in this paper are robust. Therefore, China is striving for
RCEP's discourse dominance to hedge the trade resistance brought about by the differences in political
embeddedness scenes, to reduce transportation costs by exploiting geographical advantages, and to actively build
multinational industrial chains by leveraging the infrastructure investment opportunities of the “Belt and Road”
strategy. Accelerate the promotion of high-quality growth of the Chinese economy.

Article Details

How to Cite
Lingjie Zhang, Mengxia Wang, Fang Yuan and Liang Wang. (2021). Political Embeddedness, Trade Gravity and Goods Export—Empirical Evidence from China and RCEP Trade Partners. CONVERTER, 2021(6), 534-546. Retrieved from https://converter-magazine.info/index.php/converter/article/view/417
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